The UAE and India used President Mohamed bin Zayed’s visit to NewDelhi to lock in a wide slate of agreements spanning energy, defense, space, food trade, investment, advanced technology, and people-to-people initiatives, while also raising ambitions on trade and digital cooperation.

Energy: Adnoc locks in long-term LNG supply

Adnoc led the dealmaking, with Adnoc Gas signing a long-term LNG sales and purchase agreement with state-owned Hindustan Petroleum Corporation Limited (HPCL), according to a statement (pdf). The agreement converts a previously signed heads of agreement into a binding contract.

The terms: Adnoc Gas will supply HCPL with 0.5 mtpa of LNG for 10 years starting in 2028, sourced from its Das Island liquefaction facility. The contract is valued between USD 2.5-3 bn.

Why it matters: The agreement cements India as Adnoc Gas’ largest LNG customer, as New Delhi looks to make gas account for 15% of its energy mix by 2030. Over the past 24 months, Adnoc Gas signed more than USD 20 bn worth of LNG contracts with Indian buyers — including HPCL, Indian Oil Corporation, and Gail — underlining India’s growing weight in its Asia strategy.

The bigger LNG picture: Adnoc Gas says that by 2029 it expects to be operating 15.6 mtpa of LNG capacity, with 3.2 mtpa already contracted to Indian companies.

AND- Energy cooperation is expanding beyond hydrocarbons: The two sides agreed to promote bilateral civil nuclear cooperation, including on large nuclear reactors and small modular reactors, according to a Foreign Ministry statement.

The scope includes cooperation on advanced reactor systems, nuclear power plant operations and maintenance, and nuclear safety, positioning nuclear energy as a longer-term pillar alongside LNG.

Data and digital embassies

The two sides will also collaborate on setting up a supercomputing cluster in India with UAE partnership, as well as explore UAE investment in expanding Indian data-center capacity, Foreign Secretary Vikran Misri said during a special briefing (watch, runtime: 28:06).

Digital embassies are also in the cards to provide “a safe harbor for data [...] of national importance and strategic value,” the foreign secretary said, adding that no regulatory framework for the idea has currently been established. The two sides will look at the feasibility of a digital or data embassy under mutually recognized sovereignty arrangements.

A defense partnership

Beyond energy, the leaders witnessed the exchange of a letter of intent (LoI) on a strategic defense partnership, laying the groundwork for deeper cooperation across defense policy, industry, and security engagement, state news agency Wam reports. The LoI builds on steadily expanding bilateral defense ties.

Space: From cooperation to commercial infrastructure

Space emerged as a concrete growth area. The UAE Space Agency and India’s In-Space signed an LoI to support space industry development and commercial collaboration.

On the agenda: In the briefing, Misri said the initiative could span launch complexes, satellite fabrication facilities, joint missions, training centers, and a space academy, signaling a shift from dialogue toward shared infrastructure and commercialization.

Investment: Dholera special investment region

Dholera for investment: On investment, an LoI was signed between the UAE Investment Ministry and India’s Gujarat Government to cooperate on developing the Dholera Special Investment Region, a smart city development in Gujarat. According to Misri, the proposed package could include an international airport, pilot training, MRO facilities, a greenfield port, rail and energy infrastructure, and a smart urban township, with specific projects to be finalized down the line.

Gujarat’s Gift City is also in play: Separately, the UAE and India agreed to facilitate office and operations setup for UAE companies in Gujarat International Finance Tec-City — also known as Gift City — with First Abu Dhabi Bank and DP World named as early movers, according to Jaiswal’s post. Our friends at Mashreq are also eyeing an expansion there, after Abu Dhabi Investment Authority received regulatory approval to establish a local subsidiary and launch a USD 4-5 bn fund in Gift City in February 2024.

WATCH THIS SPACE- Indian Prime Minister Shri Narendra Modi also invited UAE sovereign wealth funds to consider participating in the National Investment and Infrastructure Fund’s second Infrastructure Fund, scheduled for launch sometime this year.

The Abu Dhabi Investment Authority is already a significant backer of the NIIF, investing about USD 1 bn to become a shareholder and institutional investor in the fund in 2017.

More on food trade and culture

The two sides signed an MoU on food safety and technical requirements to boost agricultural and food exports from India while supporting the UAE’s food security objectives.

House of India incoming: The UAE and India agreed to establish a “House of India” in Abu Dhabi, envisioned as a permanent cultural space showcasing Indian art, heritage, and archaeology, according to Jaiswal. The two also committed to promoting youth exchanges, adding a social and cultural layer to the expanding partnership.

Bigger picture: USD 200 bn by 2032

Trade targets were raised alongside the agreements: Misri said bilateral trade has crossed USD 100 bn since the 2022 comprehensive economic partnership agreement (CEPA), and leaders now aim to double it to USD 200 bn by 2032.

The how-to: The agenda includes facilitating MSME exports into West Asia, Africa, and Eurasia, advancing initiatives such as Bharat Mart, a warehousing and trading hub for Indian MSMEs, and working toward interlinking national payments platforms, building on existing local-currency settlement systems.

The takeaway? The two countries are broadening the scope of their partnership

Building on plans unveiled early last year to expand their decade-old trade framework, the UAE and India are now moving to fold in eight new sectors, including AI, financial services, digital technologies, and logistics — a direction the two sides have recently reaffirmed.

Background

Momentum has been building. As we previously reported, a raft of agreements were signed between Emirati and Indian entities last year, including a UAE commitment of up to USD 2 bn to India’s logistics sector. The two sides also inked several trade and investment agreements in 2024, including work on a multi-modal trade corridor and deeper cooperation across energy and technology.

Tags: